First, the good news: Overnight at Wall Street, the Nasdaq Composite rose 0.94% to close at a record high, while the Dow and S&P 500 gained 0.49% and 0.61%, respectively, and most importantly, logged their first gains in three sessions.
The Positive Catalyst: Investors cheer Fed-rate cut talks.
Gift Nifty is pointing to open with positive bias as investors cheer Fed-rate cut talks.
Our call of the day however suggests it’s likely to be a choppy and whipsaw kind of day for the benchmark Nifty.
Blame it on tariff muddy outlook. Strictly speaking, tariff volatility is back on the front pages and the negative takeaway is that there is no end in sight for tariff uncertainties.
This Thursday morning, Japanese Nikkei is trading with negative bias amidst stalled trade negotiations between the US and Japan.
The street fears that Trump’s tariff threats could dampen global growth and curb demand for industrial metals.
Long story short: Proceed with caution at Dalal Street.
7:00 AM GLOBAL UPDATE:
GIFT Nifty: (+45, 25575)
Dow Futures: (-55, 44404)
Nasdaq 100 Futures (-31, 22834)
Nikkei (-230, 39591)
Hang Seng (-27, 23865)
Dow Jones (+218, 44458)
Nasdaq Composite (+193, 20611)
Bovespa (-1822, 137481).
WHAT HAPPENED AT WALL STREET IN OVERNIGHT TRADE:
The good news was that the ‘Fed Minutes from the June 17-18 FOMC Meeting Minutes point to lower inflation ahead’ as Fed members considered a reduction in the fed funds rate, noting that upward pressure on inflation from tariffs may be temporary or modest, and that some weakening of economic activity and labor market conditions could occur.
However, few Fed officials makers highlighted that uncertainty about the outlook was elevated due to trade policy, other government policies, and geopolitical risks, but that overall uncertainty had diminished since the previous meeting.
As on Wednesday’s close, the Nasdaq Composite gained 0.9% to 20,611, the S&P 500 was up 0.6%% at 6,263, and the Dow Jones rose 0.5% to 44,458.
Brazilian Bovespa tumbled 1.3% after President Donald Trump announced a 50% tariff on Brazilian imports, citing unfair trade practices.
Copper prices traded firm at $5.59 per pound as the theme revolves around Trump announcing plans to impose a 50% tariff on copper imports.
Gold prices ($3319 per ounce) was seen consolidating with positive bias.
WTI crude oil futures were seen consolidating with slight positive bias, now near the $68.19 per barrel.
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